Audio 3:16
Landlords called on to show charity and help reduce homelessness

Simon LauderUpdated
Mon 20 Jan 2014, 9:27 AM AEDT

The real estate business is known for fat profits, but landlords are being asked to give that up in exchange for property. A housing service is hoping a not-for-profit real estate agency will help reduce homelessness by giving low income families access to private rental properties.

Transcript

TIM PALMER: The high cost of renting a home is seen as a major contributor to Australia's rate of homelessness. It's estimated there's a shortage of about half a million low cost rental properties.

Now a housing charity has come up with a new solution - a not-for-profit real estate agency, relying on the charity of landlords.

The people behind the idea say if it works it could become a significant part of the solution to homelessness in Australia.

Simon Lauder reports.

SIMON LAUDER: The idea is the brainchild of homelessness charity, HomeGround Services. Its CEO Heather Holst says the lack of affordable private rental properties is a big problem.

HEATHER HOLST: We get as much access as we can to public housing and community housing but between them they add up to in Victoria, under 4 per cent of the housing supply, whereas private rentals, 25, 30 per cent depending which figures you look at. So that's where we need to be.

SIMON LAUDER: Dr Holst is hoping landlords will pay the service to manage their properties, offer properties to low income families at reduced rent or even donate properties for rental.

She believes the scheme will be a first for Australia.

HEATHER HOLST: So we don't know how it will go. It's a bit of an experiment, but we're hopeful.

SIMON LAUDER: Could it be a significant part of the solution to homelessness?

HEATHER HOLST: I think it has to be. Private rental, as I say, is the big part of the market so private rental is where we've got to put our emphasis I think.

SIMON LAUDER: What's at stake if it doesn't work?

HEATHER HOLST: Well, just more people staying in motels, on friend's couches, more rough sleeping, more families being broken up.

SIMON LAUDER: Do you think it will work?

HEATHER HOLST: I think it will actually, yeah, and I don't know how quickly, but I think it will.

SIMON LAUDER: The biggest uncertainty is the number of landlords who will contribute property to rent or manage.

One landlord already on board is businessman, Philip Endersbee. He's leased out his investment property at reduced rent.

PHILIP ENDERSBEE: You know, in the whole of scheme of things it's not really that much. I mean if you're saying that a two bedroom, loungeroom, kitchen sort of, you know, nice sized unit probably has a market rental of about $450 to $500. We may get $350.

SIMON LAUDER: So what are you doing getting involved in a not-for-profit real estate agency?

PHILIP ENDERSBEE: I saw that as a real opportunity, like how could we offer a place in the Eastern Suburbs to someone who may be from the women's refuge or someone from the refugee centre et cetera et cetera, and what better to move into an area where you know they haven't got other issues in the street and if they've got children they can go to a government school in an area and hopefully get that break in life that we all need every now and then.

SIMON LAUDER: Do you think this will make a significant difference or will it be at the end of the day, a handful of landlords doing their bit?

PHILIP ENDERSBEE: Initially, it'll be like that. I think you've got to be very mindful of how these things operate. This will be very much tell in the water, let's see how we go.